Shareholders will probably not be too impressed with the underwhelming results at Zytronic plc (LON:ZYT) recently. At the upcoming AGM on 03 March 2022, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Zytronic

Comparing Zytronic plc's CEO Compensation With the industry

Our data indicates that Zytronic plc has a market capitalization of UK£17m, and total annual CEO compensation was reported as UK£153k for the year to September 2021. That's a notable decrease of 8.4% on last year. We note that the salary portion, which stands at UK£146.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£149m, we found that the median total CEO compensation was UK£208k. This suggests that Zytronic remunerates its CEO largely in line with the industry average. What's more, Mark Cambridge holds UK£136k worth of shares in the company in their own name.

On an industry level, roughly 80% of total compensation represents salary and 20% is other remuneration. Zytronic has gone down a largely traditional route, paying Mark Cambridge a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Zytronic plc's Growth Numbers

Zytronic plc has reduced its earnings per share by 46% a year over the last three years. It saw its revenue drop 7.9% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Zytronic plc Been A Good Investment?

With a total shareholder return of -50% over three years, Zytronic plc shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.